It's the start of a new financial year and people all across the country will be whipping out receipts for their tax return. The question is, what are you going to do with this year’s influx of cash?
Like last year, Australian tax returns are probably going to be a little different. In the past six months many Aussies have been working part time in the office and part time from home. If that describes your situation, you’ll most likely have a few other bits and pieces to claim, such as utility, phone and internet bills. Or if you lost your job and started a new one over the past 12 months, the tax you get back might be a little more.
Whatever your circumstances are, one thing you might want to consider doing is opening a high interest savings account to stash your lump sum in. We’ve rounded up a few savings accounts with interest rates well above the average savings rate, of those we track (currently 0.42% p.a.*).
Virgin Money Boost Saver with Go Account
1.20% p.a. maximum interest rate
Earn Virgin Money Points when monthly conditions are met
This everyday account, plus savings combo offers a 1.20% p.a. maximum interest rate, as well the option to earn Virgin Money points. Savers aged 14 to 17 do not have to meet any monthly conditions to earn the full rate, while over 18s must make a minimum deposit each month and at least five settled purchases, BPAY payments or direct debits. The minimum monthly deposit is $1,000 for 18 to 24 year olds and $2,000 if you're over 25. Plus if you meet these conditions each month you’ll also be able to earn eight Virgin Money Points per transaction. These can be redeemed for cash back into your savings account, gift cards, or even to erase purchases you regret! This means that if you have enough Virgin Money points accumulated, you can use them to credit the purchase amount back into your account.
For anyone looking for a savings rate with conditions that aren’t too demanding to meet, MyState Bank’s Bonus Saver Account might be worth checking out. To earn the full 1.20% p.a. interest rate, each month you need to deposit at least $20 into your MyState savings account and make a minimum five transactions via a linked MyState Bank everyday transaction account. If for any reason you can’t meet these conditions in any given month, just keep in mind that the interest rate will drop to 0.10% p.a.
Citi Online Saver
1.10% p.a., 4 month intro rate
No account fees
Or if you don’t mind account hopping, Citi’s Online Saver might be another one to consider. At 1.10% p.a., its four month introductory interest rate is enticing. Plus, all you have to do to earn it is keep your balance below $500,000. Besides that the only catch is that it is of course an introductory rate, meaning that when the first four months is up, the rate will drop to 0.35% p.a. There are no account fees, no transaction fees and no fees for phone or internet banking.
Another savings account to think about squirelling your tax return into is Bank of Queensland’s Fast Track Saver offering. This account comes with a maximum ongoing rate of 1.05% p.a., which is made up of a 0.05% p.a. base rate and a 1.00% p.a. bonus rate. To receive the full interest rate deposit at least $1,000 into your linked Day2Day Plus Account each month (this could be your salary).
Finally, for those who would rather put their money in a savings account with fewer strings attached, another offering from Virgin Money is the Grow Account. Unlike the Boost + Go combo, this is a standalone savings account. While the maximum 0.65% p.a. interest rate is lower than the account above, there are less conditions to earn it. Each month you must make at least one deposit into the Grow Account and a maximum of one withdrawal. If you make more than one withdrawal, or forget to make a deposit, the interest rate will drop to 0.10% p.a.